Sitharaman: Build Trust, Not Fear, in India’s Economy

At a SIDBI event, Finance Minister Nirmala Sitharaman called on commentators to foster confidence rather than alarm over India’s economic outlook. She pointed out that every high-frequency indicator—from GST inflows to retail lending—signals steady domestic demand. Private investment surged 67 percent in September 2025, and company margins hit an all-time high in the March quarter. While geopolitical risks in West Asia may push up fuel and logistics costs, Sitharaman said India’s broad-based fundamentals are sound. To support micro-enterprises, the government has rolled out a collateral-free micro-credit card linked to the Udyam portal and approved ECLGS 5.0, adding ₹2.55 lakh crore in fresh credit lines. A new co-lending window between SIDBI and rural banks will further ease borrowing for smaller firms. Sitharaman cautioned that recent cuts in central excise on fuels, aimed at protecting households and businesses, could cost the exchequer nearly ₹1 lakh crore in FY 2027. She urged stakeholders to focus on India’s structural strengths instead of amplifying uncertainty.